How Family Businesses Win Using Blue Ocean Strategy

In short, Blue Ocean Strategy is a way to get out of the drama of business competition and become a different one in the market. The Blue Ocean Strategy is an effort to create differentiation and open new markets in an efficient way and create new demand.

The key is innovation and making competition irrelevant based on the view and understanding that a market that has been full of competition and industry can be reconstructed by the strategies and steps of market players.

A market that has been full of competition or called Red Ocean, especially with an easy entry character, can be challenging, especially if there are a price competition or very competitive promos. If as a businessperson sees data that the market is crowded, it means that it is necessary to implement the Blue Ocean Strategy. This is in line with the Blue Ocean concept that stops caring about competitors. We don’t compete fiercely for the same cake, but think why not make
our own?

Through value innovation, entrepreneurs can create new market space where there are no competitors at all. Automatically, new consumers will come, and you are the one who determines the rules of the industry. Being unique and relevant is much more valuable than just being a little better in the same pool.

Here are the steps in the Blue Ocean Strategy
1. Market analysis by finding saturated industrial areas and new areas that have not been served.
2. Research on customer needs that have not been met or offered by competitors.
3. Apply the ERRC (Eliminate-Reduce-Raise-Create) Framework as the main tool to differentiate our company from others.
4. Based on the results of the ERRC, create a product or service that has strong differentiation and is low-cost (value innovation).
5. Test and Validate Strategies through pilot projects or prototypes to gather customer feedback before rolling out at scale.

How do you implement the Blue Ocean Strategy in a family company or workplace?

Family businesses have unique advantages when they innovate intentionally. If you want to unlock that advantage, explore more insights on KVB.global. Share this and follow Kultur Voice Business or KVB to build differently.